Original News Release
Mithril Gives Exploration Update Including Channel Sample Results up to 4,520 g/t Silver, and 38.2 g/t Gold as Expansion of the District Continues at Copalquin, Mexico
(via TheNewswire)
Melbourne, Australia and Vancouver, Canada – TheNewswire - December 1, 2025 - Mithril Silver and Gold Limited ("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF) is pleased to provide an exploration update over multiple targets at the district scale Copalquin property, Durango State, exico.
Channel sampling across multiple district targets continues to deliver high-grade gold and silver with highlights including:
0.50 m @ 16.8 g/t gold, 625 g/t silver ( Target 1 West – El Gallo)
0.65 m @ 16.0 g/t gold, 284 g/t silver ( Target 3 – El Jabali)
0.60 m @ 38.3 g/t gold, 4,520 g/t silver ( Target 5 - Candelaria)
Ongoing petrographic work is confirming Mithril’s district scale model for the Copalquin epithermal system which has a vertical mineralised extent of over 1,200m.
This work is vectoring into potential feeder zones at Target 1, around Refugio West drill holes MTH-RE25-044 and 045 (7.20 m @ 2.78 g/t gold, 148 g/t silver plus 2.80 m @ 3.97 g/t gold, 208 g/t silver and 8.03 m @ 7.19 g/t gold, 260 g/t silver respectively) 1 , and around Target 1 South drill hole MTH-ZG25-037 (0.57 m @ 6.80 g/t gold and 4,400 g/t silver) 2 , both of which are interpreted to lie along the same northwest trending structure (the Copalquin Structure).
Target 1 resource update drilling continued, successfully expanding mineralisation to the west and providing valuable input into the Target 1 geology model that is now robust and predictive.
Target 5 drilling, mapping and channel sampling results continue to expand this highly prospective area in the southwest of the district. A further 8 drill holes have been completed at Target 5 with assays pending.
Target 3 is ready for the first phase of drilling, commencing early January 2026. Target 3 includes several high-grade historic workings including the El Jabali underground mine.
“Copalquin continues to demonstrate its exceptional scale and continuity,” commented John Skeet, Managing Director & CEO . “High-grade results from multiple targets across 9 kilometres with more than a kilometre of vertical extent, confirm we are advancing a large, district scale epithermal gold-silver system.
Our detailed study of the recent high-grade intercepts at Refugio West, Zaragoza and Target 5 (Apomal) validate the deeper plumbing of a large, vertically extensive epithermal system. This supports our modelling and demonstrates the true scale and potential of the Copalquin district. With the upcoming Target 1 resource update, Target 5 expanding and Target 3 drill-ready, we are systematically defining a high-grade, multi-target gold-silver district. Throughout 2025 we have completed the detailed groundwork ahead of a fully funded exploration program in 2026, which includes 25,000 metres of drilling in the first 6 months.”
COPALQUIN GOLD-SILVER DISTRICT, DURANGO STATE, MEXICO
With 100 historic underground gold-silver mines and workings plus 198 surface workings/pits throughout 70km 2 of mining concession area, Copalquin is an entire mining district with high-grade exploration results and a maiden JORC resource. To date there are several target areas in the district with one already hosting a high-grade gold-silver JORC mineral resource estimate (MRE) at the Target 1 area (El Refugio-La Soledad) 3 and a NI 43-101 Technical Report filed on SEDAR+, supported by a conceptional underground mining study completed on the maiden resource in early 2022 and metallurgical test work (see ASX Announcement 25 February 2022 ). There is considerable strike and depth potential to increase the resource at El Refugio and at other target areas across the district, plus the underlying geologic system that is responsible for the widespread gold-silver mineralisation.
With the district-wide gold and silver occurrences and rapid exploration success, it is clear the Copalquin District is developing into another significant gold-silver district like the many other districts in this prolific Sierra Madre Gold-Silver Trend of Mexico.
Click Image To View Full Size
Figure 1 – Copalquin District location map, locations of mining and exploration activity and local infrastructure.
Click Image To View Full Size
Figure 2 LiDAR identified historic workings across the 70km2 district. Current drilling locations at Target 1 west and Target 5 (El Apomal), and recent drilling at Zaragoza mine in Target 1 south, high priority drill target area of La Constancia-El Jabali (Target 3). Several new areas highlighted across the district for follow-up work including recently sampled Target 6
Copalquin District Exploration Progress Update
Drilling
Drilling continues at Copalquin at Targets 1 and 5, with work at Target 1 focused on expanding mineralization in the Refugio West area. Defining the geometry of the Refugio structure and its relationship to post mineral dykes and sills remains critical for refining the exploration model.
Drilling at Target 5 continues to test continuous high grade quartz veins traced for more than 1.2 km along surface and from underground workings ( Figure 5 ). Upcoming holes will focus on the Tasolera workings, located roughly 500 m southeast along strike from Apomal ( Figure 5 ).
Channel Sampling
Channel sampling at the Copalquin Project continues to deliver strong results from both surface and underground workings, reinforcing the continuity and grade potential of the district’s principal vein systems. Recent channels consistently report high grade gold and silver values along well-developed structures, confirming that mineralization is both laterally and vertically extensive (8 km and 1.2 km, respectively) across the project area. These results strengthen confidence in the modelled geometry of the Refugio, Soledad, Zaragoza, and related veins, and they validate ongoing exploration aimed at expanding known mineralized zones and identifying additional high-grade shoots along strike and at depth.
Target 1
Gold and silver samples from the Guacima Mine and the El Gallo area, located approximately 500 and 950 meters west of mineralized drillholes MTH-RE25-44 and 45, respectively, confirm the presence of additional mineralized structures that extend the broader footprint of the Copalquin system Figure 4 .
Surface samples collected to the southeast of the Copalquin structure returned grades up to 1 g/t gold and 770 g/t silver. The Copalquin structure, tested to date in the Zaragoza and Copalquin areas, remains open down dip and along strike to both the northwest and southeast. At Zaragoza, drillhole MTH-ZG25-037 intersected 0.57 m grading 6.80 g/t gold and 4,400 g/t silver , an interval interpreted to lie on the same northwest trending Copalquin Structure ( Figure 8 ).
Additionally, several samples have returned promising results from a 1.2 m wide , banded quartz vein located 650 m north of Los Reyes and 650 m northeast of La Soledad with up to 2 g/t Au and 201 g/t Ag .
Target 3
Underground sampling at Jabali continues to yield excellent results from historic workings. Samples from a previously unsampled working have returned up to 15.95 g/t Au and 1275 g/t Ag over a 0.65 m interval. These samples further highlight the prospective nature of Target 3.
Target 5
Underground and surface sampling from the San Miguel Mine, located 550 m southeast of Tasolera and 1.2 km southeast along trend from the Apomal vein system, has returned several high-grade silver assays and anomalous to locally high-grade gold values. These samples display Ag:Au ratios characteristic of Target 5, commonly greater than 100:1. Although most samples contain low to moderate gold, one 0.60 m interval returned 38.3 g/t Au and 4,520 g/t Ag . These results are consistent with the very high-grade samples collected at Apomal and Tasolera, underscoring the continuity and strength of mineralization across Target 5.
Table 1 Highlights of surface and underground sample assay results
Sample
Easting (m)
Northing (m)
Elevation (m)
Surface/
UG
Location
Width (m)
Au (g/t)
Ag (g/t)
Cu (g/t)
Pb (g/t)
Zn (g/t)
815820
287880
2822314
720
Surface
Los Martires
0.90
0.8
106
28
482
332
815826
287526
2821913
749
Surface
El Limon
0.50
2.53
501
116
205
130
815832
287126
2821566
724
Surface
El Limon
0.30
0.643
59.6
8
23
29
815834
287099
2821670
721
Surface
El Limon
1.00
0.668
25.7
36
11
49
815839
287650
2823707
979
Surface
El Platano
0.80
3.55
77
123
1120
35
815843
287627
2823692
980
Surface
El Platano
0.73
1.04
48
36
47
25
815772
287843
2822716
766
Surface
Apomal
0.50
16.8
625
98
240
164
815869
288132
2823629
995
Surface
La Guacima
1.00
0.477
46.5
21
76
57
815873
288130
2823631
996
Surface
La Guacima
0.50
3.01
198
13
105
81
815896
287663
2822032
808
Surface
Camino El Limon
0.60
0.617
136
62
5180
796
815897
287646
2822082
820
Surface
Camino El Limon
0.40
0.875
179
31
2080
281
815898
287615
2822234
835
Surface
Camino El Limon
1.10
0.873
149
41
135
182
815899
287616
2822235
835
Surface
Camino El Limon
0.50
0.558
85.6
40
155
144
815885
288724
2821914
923
Surface
Candelaria Working
0.60
0.216
320
74
2080
259
815886
288635
2821817
874
Underground
San Miguel Mine
0.75
1.71
314
208
339
277
815887
288634
2821817
874
Underground
San Miguel Mine
0.75
0.357
67.9
143
194
183
815888
288632
2821819
874
Underground
San Miguel Mine
0.60
1.23
335
92
152
134
815889
288631
2821818
874
Underground
San Miguel Mine
0.55
0.606
67.8
133
223
220
815891
288627
2821820
876
Underground
San Miguel Mine
0.60
38.3
4520
1945
4460
523
815892
288625
2821822
878
Underground
San Miguel Mine
0.60
0.482
77.4
546
415
143
815893
288621
2821823
878
Underground
San Miguel Mine
0.60
0.624
59.5
196
499
188
815894
288617
2821825
880
Surface
San Miguel Mine
0.65
1.055
123
43
96
75
815895
288616
2821825
880
Surface
San Miguel Mine
0.55
0.97
295
182
339
114
814734
292487
2824820
1460
Surface
Jabali mine II
0.65
15.95
1275
50
17
42
814735
292487
2824820
1460
Surface
Jabali mine II
0.55
0.998
641
43
12
45
814739
292450
2824837
1458
Underground
Jabali mine II
1.15
4.59
396
51
20
34
814741
292454
2824840
1458
Underground
Jabali mine II
0.75
6.54
157
36
17
58
814743
292466
2824837
1442
Underground
Jabali mine I
1.00
2.52
126
29
18
20
814744
292466
2824837
1442
Underground
Jabali mine I
1.00
2.69
55.9
30
13
38
814749
292508
2824820
1442
Underground
Jabali mine I
0.65
0.854
50.2
6
21
26
814852
292508
2824814
1442
Underground
Jabali mine I
0.60
2.01
201
9
9
21
814853
292508
2824814
1442
Underground
Jabali mine I
0.60
1.995
119
34
50
56
814854
292510
2824802
1442
Underground
Jabali mine I
0.50
1.475
19.4
15
17
20
814855
292512
2824792
1442
Surface
Jabali mine I
0.50
2.62
6.9
14
47
47
814768
290269
2823165
880
Surface
Copalquin East
0.80
1.01
770
2730
209
729
Click Image To View Full Size
Figure 3 Property-wide channel sampling results for the middle and south district sections within ~50% of the 70 km2 mining concession area covering the Copalquin District
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Figure 4 Target 1 channel sampling results. Mineralization of the Refugio structure to the west towards the Guacima Mine and La Soledad
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Figure 5 Target 5 channel sampling results. Several NW trending structures with underground workings with strike lengths over 1 km with high-grade channel sampling
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Figure 6 Channel sampling results at the historic El Jabali underground mine in Target 3 where first drilling will commence early January 2026
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Figure 7 Channel sampling north of the Target 1 resource drilling area
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Figure 8 Sampling along the Copalquin Structure at the historic workings of Zaragoza and Copalquin 800-900 metres southeast of the Target 1 resource area
ABOUT THE COPALQUIN GOLD SILVER PROJECT
The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km 2 containing several dozen historic gold and silver mines and workings, ten of which had notable production. The district is within the Sierra Madre Gold Silver Trend which extends north-south along the western side of Mexico and hosts many gold and silver districts.
Multiple mineralisation events, young intrusives thought to be system-driving heat sources, widespread alteration together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for Gold and Silver.
Within 15 months of drilling in the Copalquin District, Mithril delivered a maiden JORC mineral resource estimate demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see ASX release 17 November 2021 ) ^ and a NI 43-101 Technical Report filed on SEDAR+
Indicated 691 kt @ 5.43 g/t gold, 114 g/t silver for 121 ,000 oz gold plus 2,538,000 oz silver
Inferred 1,725 kt @ 4.55 g/t gold, 152 g/t silver for 252 ,000 oz gold plus 8,414,000 oz silver
(using a cut-off grade of 2.0 g/t AuEq*)
28.6% of the resource tonnage is classified as indicated
Table 2 Mineral resource estimate El Refugio – La Soledad using a cut-off grade of 2.0 g/t AuEq*
Tonnes
(kt)
Tonnes
(kt)
Gold
(g/t)
Silver
(g/t)
Gold Eq.* (g/t)
Gold
(koz)
Silver
(koz)
Gold Eq.* (koz)
El Refugio
Indicated
691
5.43
114.2
7.06
121
2,538
157
Inferred
1,447
4.63
137.1
6.59
215
6,377
307
La Soledad
Indicated
-
-
-
-
-
-
-
Inferred
278
4.12
228.2
7.38
37
2,037
66
Total
Indicated
691
5.43
114.2
7.06
121
2,538
157
Inferred
1,725
4.55
151.7
6.72
252
8,414
372
* In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade + ((Ag grade/70) x (Ag recovery/Au recovery)). The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com .
For silver equivalent (AgEq.) grade reporting, the same factors as above are used with the formula AgEq grade = Ag grade + ((Au grade x 70) x (Au recovery/Ag recovery))
At this early stage, the metallurgical recoveries were assumed to be equal (93%). Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022) and these will be used when the resource is updated in the future. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold.
^ The information in this report that relates to Mineral Resources or Ore Reserves is based on information provided in the following ASX announcement: 17 Nov 2021 - MAIDEN JORC RESOURCE 529,000 OUNCES @ 6.81G/T (AuEq * ), which includes the full JORC MRE report, also available on the Mithril Resources Limited Website.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
Mining study (conceptual) and metallurgical test work supports the development of the El Refugio-La Soledad resource with conventional underground mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on-site with conventional processing. The average vein width is approximately 4.5 metres.
Mithril is currently exploring in the Copalquin District to expand the resource footprint, demonstrating its multi-million-ounce gold and silver potential. Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10M on or any time before 7 August 2028.
-ENDS-
Released with the authority of the Board.
For further information contact:
John Skeet
Managing Director and CEO
[email protected]
+61 435 766 809
NIKLI COMMUNICATIONS
Corporate Communications
[email protected]
[email protected]
The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Competent Persons Statement - JORC
The information in this announcement that relates to metallurgical test results, mineral processing and project development and study work has been compiled by Mr John Skeet who is Mithril’s CEO and Managing Director. Mr Skeet is a Fellow of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.
Mr Skeet has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Skeet consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
The information in this announcement that relates to sampling techniques and data, exploration results and geological interpretation for Mithril’s Mexican project, has been compiled by Mr Darren LeFort who is Mithril’s Exploration Manager. Mr LeFort is a member of the Engineers and Geoscientists of British Columbia and a Certified Professional Geologist (P.Geo). This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.
Mr LeFort has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr LeFort consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
The information in this announcement that relates to Mineral Resources is reported by Mr Rodney Webster, former Principal Geologist at AMC Consultants Pty Ltd (AMC), who is a Member of the Australian Institute of Geoscientists. The report was peer reviewed by Andrew Proudman, Principal Consultant at AMC. Mr Webster is acting as the Competent Person, as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, for the reporting of the Mineral Resource estimate. A site visit was carried out by Jose Olmedo a geological consultant with AMC, in September 2021 to observe the drilling, logging, sampling and assay database. Mr Webster consents to the inclusion in this report of the matters based on information in the form and context in which it appears
Qualified Persons – NI 43-101
Scientific and technical information in this Report has been reviewed and approved by Mr John Skeet (FAUSIMM, CP) Mithril’s Managing Director and Chief Executive Officer. Mr John Skeet is a qualified person within the meaning of NI 43-101.
Samples are sent to ALS Global with sample preparation performed in Chihuahua City, Mexico and assaying of sample pulps performed in North Vancouver, BC, Canada
A cautionary note regarding surface and channel samples, which by their nature, are selective samples and may not represent true underlying mineralization.
Table 3 All Channel Sampling Results reported in this announcement
Sample
Easting (m)
Northing (m)
Elevation (m)
Surface/UG
Location
Width (m)
Au (g/t)
Ag (g/t)
Cu (g/t)
Pb (g/t)
Zn (g/t)
815785
288145
2823621
977
Underground
La Guacima
1.00
0.014
2.5
26
21
57
815786
288144
2823622
977
Underground
La Guacima
1.00
0.027
0.7
11
10
52
815788
288144
2823623
977
Underground
La Guacima
1.00
0.031
0.7
9
11
48
815789
288144
2823624
977
Underground
La Guacima
1.00
0.012
0.5
4
12
142
815790
288143
2823625
977
Underground
La Guacima
1.00
0.028
1.7
20
19
288
815791
288143
2823625
977
Underground
La Guacima
1.00
0.023
1.8
28
14
318
815792
288142
2823626
977
Underground
La Guacima
1.00
0.009
1.9
28
16
71
815793
288142
2823627
977
Underground
La Guacima
1.00
0.025
3.1
38
14
75
815794
288142
2823628
977
Underground
La Guacima
1.00
0.029
2.6
7
11
18
815795
288141
2823629
977
Underground
La Guacima
1.00
0.244
16
7
13
16
815796
288141
2823630
977
Underground
La Guacima
1.00
0.067
9
5
24
13
815797
288141
2823631
977
Underground
La Guacima
1.00
0.044
6.8
4
14
13
815798
288140
2823632
977
Underground
La Guacima
1.00
0.051
6.7
5
14
19
815799
288140
2823633
977
Underground
La Guacima
1.00
0.014
1.5
5
9
31
815816
287796
2822247
762
Surface
Los Martires
1.00
0.063
5.9
89
1075
955
815817
287779
2822260
766
Surface
Los Martires
0.30
0.224
36
36
1605
2180
815818
287739
2822235
794
Surface
Los Martires
1.20
0.006
1
38
1290
189
815819
287738
2822235
794
Surface
Los Martires
0.80
0.006
1.2
86
150
306
815820
287880
2822314
720
Surface
Los Martires
0.90
0.8
106
28
482
332
815821
287894
2822314
698
Surface
Los Martires
1.00
0.033
1.9
24
380
576
815822
288364
2822425
773
Surface
Apomal
0.50
0.173
25
13
89
111
815824
288868
2822377
872
Surface
Candelaria
0.50
0.29
33
25
55
109
815826
287526
2821913
749
Surface
El Limon
0.50
2.53
501
116
205
130
815828
287455
2821862
755
Surface
El Limon
0.80
0.038
12
21
125
696
815829
287143
2821927
778
Surface
El Limon
0.50
0.218
21
125
148
259
815830
287142
2821925
777
Surface
El Limon
0.80
0.239
13
73
94
178
815831
287118
2821863
748
Surface
El Limon
1.00
0.025
2.5
10
15
60
815832
287126
2821566
724
Surface
El Limon
0.30
0.643
60
8
23
29
815833
287098
2821670
721
Surface
El Limon
1.00
0.2
17
13
13
55
815834
287099
2821670
721
Surface
El Limon
1.00
0.668
26
36
11
49
815835
287021
2821431
655
Surface
El Limon
0.50
0.257
7.3
15
6
21
815836
287707
2823720
994
Surface
El Platano
1.00
<0.005
1.2
14
6
2
815837
287697
2823718
1000
Surface
El Platano
1.00
0.006
2
9
14
3
815838
287697
2823719
1000
Surface
El Platano
0.80
<0.005
0.9
4
8
3
815839
287650
2823707
979
Surface
El Platano
0.80
3.55
77
123
1120
35
815840
287650
2823708
978
Surface
El Platano
1.00
0.461
16
49
181
71
815841
287658
2823704
977
Surface
El Platano
0.80
0.017
1.6
7
20
22
815843
287627
2823692
980
Surface
El Platano
0.73
1.04
48
36
47
25
814726
293214
2825424
2059
Surface
El Duraznal
0.75
0.103
<0.5
5
20
40
814727
293264
2825280
2033
Surface
El Duraznal
0.50
0.006
<0.5
7
13
24
814728
293137
2825317
1991
Surface
El Duraznal
0.50
<0.005
<0.5
3
13
40
814729
293063
2825380
1972
Surface
El Duraznal
0.50
<0.005
<0.5
4
13
38
814730
293055
2825401
1985
Surface
El Duraznal
0.50
<0.005
<0.5
4
12
35
814731
292907
2825392
1895
Surface
El Duraznal
0.50
<0.005
<0.5
5
19
57
814732
292838
2825462
1865
Surface
El Duraznal
0.80
<0.005
<0.5
6
16
46
815772
287843
2822716
766
Surface
Apomal
0.50
16.8
625
98
240
164
815844
287622
2823393
1014
Surface
El Gallo Sur
0.40
0.099
1.9
3
15
19
815845
287626
2823395
1014
Surface
El Gallo Sur
0.40
0.065
3.1
3
50
10
815846
288338
2823254
757
Surface
La Higuerita
0.70
0.028
9.9
11
107
73
815847
288335
2823251
756
Surface
La Higuerita
0.70
0.023
2
40
61
76
815848
288341
2823264
763
Surface
La Higuerita
0.50
0.008
0.8
23
113
140
815849
288350
2823271
771
Surface
La Higuerita
0.90
0.024
1.4
20
27
35
815851
288351
2823272
772
Surface
La Higuerita
0.90
0.012
1.6
20
29
60
815852
288351
2823272
772
Surface
La Higuerita
0.90
0.014
2.2
16
44
78
815853
288354
2823275
773
Surface
La Higuerita
0.80
0.072
5.5
17
310
175
815854
288423
2823464
799
Surface
La Higuerita
0.70
0.143
2.6
25
19
43
815855
288443
2823438
818
Surface
La Higuerita
0.50
0.008
0.6
13
32
70
815856
288393
2823373
770
Surface
La Higuerita
0.50
0.143
4.6
108
24
22
815857
288394
2823308
824
Surface
La Higuerita
0.50
0.011
0.5
10
15
53
815858
288389
2823307
808
Surface
La Higuerita
0.50
0.005
1.1
80
27
42
815859
288354
2823267
764
Surface
La Higuerita
0.50
0.109
9.2
20
48
68
815860
289063
2822631
792
Surface
La Maquina
0.70
0.008
0.6
31
19
80
815861
288177
2823358
727
Surface
La Higuerita
0.50
0.008
0.5
9
25
30
815862
288074
2823208
761
Surface
La Higuerita
0.50
0.084
0.7
14
140
121
815863
288066
2823213
751
Surface
La Higuerita
0.50
0.012
0.6
30
9
31
815864
287910
2823328
793
Surface
El Gallo Sur
0.60
0.018
0.7
42
25
37
815865
287912
2823404
819
Surface
El Gallo Sur
0.80
0.013
2.6
22
60
64
815866
288133
2823628
994
Surface
La Guacima
0.70
0.058
4.7
6
8
10
815868
288133
2823629
994
Surface
La Guacima
0.70
0.025
2.4
4
23
8
815869
288132
2823629
995
Surface
La Guacima
1.00
0.477
47
21
76
57
815870
288131
2823630
995
Surface
La Guacima
1.00
0.328
36
10
40
15
815871
288131
2823631
996
Surface
La Guacima
1.00
0.238
19
24
34
87
815873
288130
2823631
996
Surface
La Guacima
0.50
3.01
198
13
105
81
815874
288163
2823645
1010
Surface
La Guacima
0.50
0.007
0.8
5
5
20
815876
288162
2823645
1007
Surface
La Guacima
0.50
0.019
6.7
8
8
15
814754
294161
2823521
1515
Surface
El Peru
0.50
<0.005
<0.5
15
9
52
814755
294163
2823523
1515
Surface
El Peru
0.50
<0.005
<0.5
21
12
75
814756
294168
2823544
1517
Surface
El Peru
1.00
<0.005
<0.5
19
12
71
814757
294160
2823652
1580
Surface
El Peru
0.50
<0.005
<0.5
9
6
17
814758
294156
2823654
1581
Surface
El Peru
0.50
<0.005
<0.5
13
11
46
814759
294155
2823659
1582
Surface
El Peru
0.80
<0.005
<0.5
8
7
20
814760
294180
2824644
1733
Surface
Santa Cruz
0.50
<0.005
<0.5
7
15
47
815801
289205
2821765
840
Surface
Candelaria Sur
0.50
0.302
1.2
9
32
89
815802
289195
2821718
828
Surface
Candelaria Sur
0.50
0.005
<0.5
14
<2
12
815803
289195
2821719
828
Surface
Candelaria Sur
0.50
<0.005
<0.5
16
3
9
815804
289196
2821720
828
Surface
Candelaria Sur
1.00
<0.005
<0.5
9
5
14
815805
289196
2821721
828
Surface
Candelaria Sur
1.00
<0.005
<0.5
14
8
20
815806
289205
2821653
810
Surface
Candelaria Sur
0.60
0.011
0.6
12
309
309
815807
289249
2821686
822
Surface
Candelaria Sur
0.55
0.008
1.2
14
156
127
815808
289250
2821684
822
Surface
Candelaria Sur
0.50
0.01
1.8
29
217
211
815809
289282
2821783
843
Surface
Candelaria Sur
1.00
0.005
<0.5
9
11
43
815810
289279
2821777
842
Surface
Candelaria Sur
0.50
<0.005
<0.5
6
8
34
815811
289284
2821789
848
Surface
Candelaria Sur
1.00
0.005
0.6
42
703
31
815813
289311
2821868
873
Surface
Candelaria Sur
0.50
0.042
1.9
133
404
351
815814
289311
2821908
900
Surface
Candelaria Sur
0.50
0.009
0.5
17
158
343
815815
289313
2821924
904
Surface
Candelaria Sur
0.50
0.005
<0.5
9
49
65
814801
291992
2824829
1344
Surface
Northwest Jabali
0.70
<0.005
<0.5
6
8
22
814802
291992
2824829
1344
Surface
Northwest Jabali
0.90
<0.005
<0.5
5
8
25
814803
291992
2824829
1344
Surface
Northwest Jabali
0.90
<0.005
<0.5
2
8
31
814804
291371
2824431
1224
Surface
West of Jabali
0.70
<0.005
<0.5
50
18
96
814805
291371
2824431
1224
Surface
West of Jabali
0.90
<0.005
0.7
71
22
110
814806
291371
2824431
1224
Surface
West of Jabali
0.90
<0.005
<0.5
50
26
141
814807
291371
2824431
1224
Surface
West of Jabali
0.70
<0.005
0.5
37
38
95
814808
291371
2824431
1224
Surface
West of Jabali
1.00
<0.005
<0.5
32
10
77
815896
287663
2822032
808
Surface
Camino El Limon
0.60
0.617
136
62
5180
796
815897
287646
2822082
820
Surface
Camino El Limon
0.40
0.875
179
31
2080
281
815898
287615
2822234
835
Surface
Camino El Limon
1.10
0.873
149
41
135
182
815899
287616
2822235
835
Surface
Camino El Limon
0.50
0.558
86
40
155
144
815901
288264
2821508
760
Surface
El Limon
0.40
0.037
27
58
1115
471
815903
287905
2821229
678
Surface
El Limon
0.50
0.008
0.6
14
60
83
815877
288719
2821916
924
Surface
Candelaria Working
0.80
0.129
24
44
613
187
815878
288719
2821917
924
Surface
Candelaria Working
0.50
0.021
4.9
47
31
418
815879
288720
2821917
924
Surface
Candelaria Working
0.90
0.011
3.5
47
26
540
815880
288720
2821917
924
Surface
Candelaria Working
0.65
0.045
3.8
32
217
400
815881
288721
2821917
925
Surface
Candelaria Working
0.80
0.008
2.2
30
28
716
815882
288721
2821918
925
Surface
Candelaria Working
0.60
0.012
4.7
15
21
311
815883
288722
2821918
925
Surface
Candelaria Working
0.50
0.015
2.9
15
50
200
815884
288727
2821910
923
Surface
Candelaria Working
0.50
0.047
15
44
1375
228
815885
288724
2821914
923
Surface
Candelaria Working
0.60
0.216
320
74
2080
259
815886
288635
2821817
874
Underground
San Miguel Mine
0.75
1.71
314
208
339
277
815887
288634
2821817
874
Underground
San Miguel Mine
0.75
0.357
68
143
194
183
815888
288632
2821819
874
Underground
San Miguel Mine
0.60
1.23
335
92
152
134
815889
288631
2821818
874
Underground
San Miguel Mine
0.55
0.606
68
133
223
220
815890
288631
2821818
874
Underground
San Miguel Mine
0.55
0.188
43
25
38
99
815891
288627
2821820
876
Underground
San Miguel Mine
0.60
38.3
4520
1945
4460
523
815892
288625
2821822
878
Underground
San Miguel Mine
0.60
0.482
77
546
415
143
815893
288621
2821823
878
Underground
San Miguel Mine
0.60
0.624
60
196
499
188
815894
288617
2821825
880
Surface
San Miguel Mine
0.65
1.055
123
43
96
75
815895
288616
2821825
880
Surface
San Miguel Mine
0.55
0.97
295
182
339
114
814733
292490
2824846
1465
Surface
El Jabalí NW
0.50
0.005
<0.5
7
12
78
814734
292487
2824820
1460
Surface
Jabali mine II
0.65
15.95
####
50
17
42
814735
292487
2824820
1460
Surface
Jabali mine II
0.55
0.998
641
43
12
45
814736
292486
2824819
1461
Surface
Jabali mine II
0.50
0.033
12
19
12
46
814737
292486
2824819
1461
Surface
Jabali mine II
0.60
0.025
3.1
9
16
72
814738
292487
2824822
1460
Surface
Jabali mine II
0.50
0.037
5.1
14
14
54
814739
292450
2824837
1458
Underground
Jabali mine II
1.15
4.59
396
51
20
34
814741
292454
2824840
1458
Underground
Jabali mine II
0.75
6.54
157
36
17
58
814742
292455
2824834
1458
Underground
Jabali mine II
0.50
0.487
3.7
31
12
43
814743
292466
2824837
1442
Underground
Jabali mine I
1.00
2.52
126
29
18
20
814744
292466
2824837
1442
Underground
Jabali mine I
1.00
2.69
56
30
13
38
814745
292470
2824842
1442
Underground
Jabali mine I
0.90
0.368
29
16
10
31
814746
292470
2824842
1442
Underground
Jabali mine I
0.85
0.43
32
14
11
34
814747
292473
2824846
1442
Underground
Jabali mine I
1.00
0.16
1.2
13
12
58
814748
292509
2824826
1442
Underground
Jabali mine I
1.00
0.125
4.7
13
9
32
814749
292508
2824820
1442
Underground
Jabali mine I
0.65
0.854
50
6
21
26
814852
292508
2824814
1442
Underground
Jabali mine I
0.60
2.01
201
9
9
21
814853
292508
2824814
1442
Underground
Jabali mine I
0.60
1.995
119
34
50
56
814854
292510
2824802
1442
Underground
Jabali mine I
0.50
1.475
19
15
17
20
814855
292512
2824792
1442
Surface
Jabali mine I
0.50
2.62
6.9
14
47
47
814856
292480
2824724
1374
Surface
El Jabalí W
0.50
0.092
4.9
11
11
32
814857
292480
2824722
1374
Surface
El Jabalí W
0.60
0.213
1.6
15
5
14
814809
291222
2824933
1458
Surface
NE of Los Reyes
1
0.009
<0.5
3
10
14
814810
291225
2824918
1458
Surface
NE of Los Reyes
0.5
0.032
0.6
7
21
19
814811
291221
2824914
1459
Surface
NE of Los Reyes
1
0.008
0.9
6
26
18
814812
291235
2824868
1445
Surface
NE of Los Reyes
1
0.018
1.9
5
27
36
814813
291248
2824804
1406
Surface
NE of Los Reyes
0.5
<0.005
<0.5
2
16
60
814814
291247
2824800
1407
Surface
NE of Los Reyes
1
<0.005
<0.5
2
8
27
814816
290502
2824428
1076
Surface
NE of Los Reyes
0.8
<0.005
<0.5
5
12
10
814817
290502
2824420
1076
Surface
NE of Los Reyes
0.7
0.296
3.4
7
16
44
814818
290502
2024420
1076
Surface
NE of Los Reyes
0.9
0.014
<0.5
4
9
15
814861
294738
2823013
1755
Surface
Desecho Perú
0.50
<0.005
<0.5
2
15
17
814862
294733
2823015
1747
Surface
Desecho Perú
0.50
<0.005
<0.5
1
15
22
814863
294733
2823015
1747
Surface
Desecho Perú
0.50
<0.005
<0.5
3
15
23
814864
294893
2822934
1869
Surface
Desecho Perú
0.50
<0.005
<0.5
4
12
32
814761
290361
2823150
904
Surface
Copalquin East
0.50
0.005
0.7
58
39
86
814762
290365
2823150
905
Surface
Copalquin East
0.80
0.15
12
146
136
152
814763
290367
2823151
905
Surface
Copalquin East
0.70
0.189
17
175
88
86
814764
290368
2823153
905
Surface
Copalquin East
0.50
0.038
11
159
143
164
814765
290384
2823160
911
Surface
Copalquin East
0.50
0.005
1.1
74
30
32
814766
290424
2823181
934
Surface
Copalquin East
0.60
0.023
0.6
25
27
50
814767
290502
2823173
967
Surface
Copalquin East
0.50
0.009
1.2
37
148
9
814768
290269
2823165
880
Surface
Copalquin East
0.80
1.01
770
2730
209
729
814769
290270
2823166
880
Surface
Copalquin East
0.50
0.077
13
131
80
113
814770
290273
2823163
880
Surface
Copalquin East
0.50
0.106
7.2
76
233
92
JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling techniques
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representativity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Drill core samples are cut lengthwise with a diamond saw. Intervals are nominally 1 m but may vary between 0.5 m to 1.5 m based on geologic criteria.
The same side of the core is always sent to sample (left side of saw).
Reported intercepts are calculated as either potentially underground mineable (100m down hole) or as potentially open-pit mineable (near surface).
Potentially underground mineable intercepts are calculated as length weighted averages of material greater than or equal to 1 g/t AuEQ_70 allowing up to 2m of internal dilution.
Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than or equal to 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution.
Rock Sawn Channel samples underground and surface are collected with the assistance of a handheld portable saw. The channels are 2.5 to 3cm deep and 6-8 cm wide along continuous lines oriented perpendicular to the mineralized structure. The samples are as representative as possible
Rock Sawn Channel surface samples were surveyed with a Handheld GPS then permanently mark with an aluminium tag and red colour spray across the strike of the outcrop over 1 metre. Samples are as representative as possible
Rock Sawn Channel underground samples were located after a compass and tape with the mine working having a surveyed control point at the portal, then permanently marked with an aluminium tag and red colour spray oriented perpendicular to the mineralized structure. Samples are as representative as possible
Soil sampling has been carried out by locating pre-planned points by handheld GPS and digging to below the first colour-change in the soil (or a maximum of 50 cm). In the arid environment there is a 1 – 10 cm organic horizon and a 10 – 30 cm B horizon above the regolith. Samples are sieved to -80 mesh in the field. Samples are collected on a 20 m x 50 m grid or every 20 m on N–S lines 50 m apart. These samples are considered representative of the medium being sampled and lines are appropriately oriented to the nearly E–W structural trend.
Drilling techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
Drilling is done with MP500 man-portable core rigs capable of drilling HQ size core to depths of 350-400m (depending on ground conditions), reducing to NQ size core for greater depths. Core is recovered in a standard tube.
Drill sample recovery
Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Drill recovery is measured based on measured length of core divided by length of drill run.
Recovery in holes CDH-001 through CDH-025 and holes CDH-032 through CDH-077 was always above 90% in the mineralized zones. Detailed core recovery data are maintained in the project database.
Holes CDH-026 through CDH-031 had problems with core recovery in highly fractured, clay rich breccia zones.
There is no adverse relationship between recovery and grade identified to date.
Logging
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
Geotechnical and geological logging of the drill core takes place on racks in the company core shed.
Core samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Core logging is both qualitative or quantitative in nature. Photos are taken of each box of core before samples are cut. Photos of cut core intervals are taken after sampling. Core is wetted to improve visibility of features in the photos.
All core has been logged and photographed.
Rock sawn channel samples are marked, measured and photographed at location
Soil samples are recorded at location, logged and described
Sub-sampling techniques and sample preparation
If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representativity of samples.
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.
Core is sawn and half core is taken for sample.
Samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.
Visual review to assure that the cut core is ½ of the core is performed to assure representativity of samples.
Crushed core duplicates are split/collected by the laboratory and submitted for assay (1 in 30 samples)
Sample sizes are appropriate to the grain size of the material being sampled.
Rock sawn channel samples and soil samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
Samples are assayed for gold using ALS Minerals Au-AA25 method a 30 g fire assay with an AA finish. This is considered a total assay technique.
Samples are assayed for silver using ALS Minerals ME-ICP61 method. Over limits are assayed by silverOG63 and silverGRAV21. These are considered a total assay technique.
Standards and blanks are inserted at a rate of one per every 25 samples and one per every 40 samples, respectively. Pulp duplicate sampling is undertaken for 3% of all samples (see above). External laboratory checks will be conducted as sufficient samples are collected. Levels of accuracy (ie lack of bias) and precision have not yet been established.
Certified Reference Materials – Rock Labs and CDN CRMs have been used throughout the project including, low (~2 g/t Au), medium (~9 g/t Au) and high (~18g/t Au and ~40 g/t Au). Results are automatically checked on data import into the BEDROCK database to fall within 2 standard deviations of the expected value.
Samples with significant amounts of observed visible gold are also assayed by AuSCR21, a screen assay that analyses gold in both the milled pulp and in the residual oversize from pulverization. This has been done for holes CDH-075 and CDH-077.
Verification of sampling and assaying
The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
The verification of significant intersections by either independent or alternative company personnel has not been conducted. A re-assay program of pulp duplicates is currently in progress.
MTH has drilled one twin hole. Hole CDH-072, reported in the 15/6/2021 announcement, is a twin of holes EC-002 and UC-03. Results are comparable.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols are maintained in the company’s core facility.
Assay data have not been adjusted other than applying length weighted averages to reported intercepts.
Location of data points
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
Drill collar coordinates are currently located by handheld GPS. Precise survey of hole locations is planned. Downhole surveys of hole deviation are recorded using a Reflex Multishot tool for all holes. A survey measurement is first collected at 15 meters downhole, and then every 50 meters until the end of the hole. Locations for holes have been surveyed with differential GPS to a sub 10 cm precision.
UTM/UPS WGS 84 zone 13 N
High quality topographic control from LiDAR imagery and orthophotos covers the entire project area.
Data spacing and distribution
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
Data spacing is appropriate for the reporting of Exploration Results.
The Resource estimation re-printed in this announcement was originally released on 17 Nov 2021
No sample compositing has been applied.
Orientation of data in relation to geological structure
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Cut lines are marked on the core by the geologists to assure that the orientation of sampling achieves unbiased sampling of possible structures. This is reasonably well observed in the core and is appropriate to the deposit type.
The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a sampling bias.
Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible
Sample security
The measures taken to ensure sample security.
Samples are stored in a secure core storage facility until they are shipped off site by small aircraft and delivered directly to ALS Global sample preparation facility in Chihuahua, Mexico. ALS airfreights the sample pulps to their assaying facility in North Vancouver, BC, Canada
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
A review with spot checks was conducted by AMC in conjunction with the resource estimate published 17 Nov 2021. Results were satisfactory to AMC.
Section 2 Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
Concessions at Copalquin
No.
Concession
Concession Title number
Area (Ha)
Location
1
LA SOLEDAD
52033
6
Tamazula, Durango, Mexico
2
EL COMETA
164869
36
Tamazula, Durango, Mexico
3
SAN MANUEL
165451
36
Tamazula, Durango, Mexico
4
COPALQUIN
178014
20
Tamazula, Durango, Mexico
5
EL SOL
236130
6,000
Tamazula, Durango and Badiraguato, Sinaloa, México
6
EL CORRAL
236131
907.3243
Tamazula, Durango and Badiraguato, Sinaloa, México
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
Previous exploration by Bell Coast Capital Corp. and UC Resources was done in the late 1990’s and in 2005 – 2007. Work done by these companies is historic and non-JORC compliant. Mithril uses these historic data only as a general guide and will not incorporate work done by these companies in resource modelling.
Work done by the Mexican government and by IMMSA and will be used for modelling of historic mine workings which are now inaccessible (void model)
Geology
Deposit type, geological setting and style of mineralisation.
Copalquin is a low sulfidation epithermal gold-silver deposit hosted in andesite. This deposit type is common in the Sierra Madre Occidental of Mexico and is characterized by quartz veins and stockworks surrounded by haloes of argillic (illite/smectite) alteration. Veins have formed as both low-angle semi-continuous lenses parallel to the contact between granodiorite and andesite and as tabular veins in high-angle normal faults. Vein and breccia thickness has been observed up to 30 meters wide with average widths on the order of 3 to 5 meters. The overall strike length of the semi-continuous mineralized zone from El Gallo to Refugio, Cometa, Los Pinos, Los Reyes, La Montura to Constancia and Santa Cruz is almost 7 kilometres. The southern area from south west of Apomal to San Manuel and to Las Brujas-El Peru provides additional exploration potential up to 6km.
Drill hole Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
easting and northing of the drill hole collar
• elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
See Table 3 in the announcement for full details of the channel sample results
Data aggregation methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
Potentially underground mineable intercepts are calculated as length weighted averages of material greater than or equal to 1 g/t AuEQ_70 allowing up to 2m of internal dilution.
Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than or equal to 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution.
No upper cut-off is applied to reporting intercepts.
Length weighted averaging is used to report intercepts. The example of CDH-002 is shown. The line of zero assays is a standard which was removed from reporting.
Au
Raw
silver
raw
Length
(m)
Au
*length
silver
*length
7.51
678
0.5
3.755
339
11.85
425
0.55
6.5175
233.75
0 0 0 0 0
0.306
16
1
0.306
16
0.364
31.7
1
0.364
31.7
3.15
241
0.5
1.575
120.5
10.7
709
0.5
5.35
354.5
15.6
773
0.5
7.8
386.5
From
To
Length
Au gpt
silver gpt
4.55
25.667
1481.9
91.95
96.5
4.55
5.64
325.7
In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade + ((silver grade/70) x (silver recovery/Au recovery)). The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com At this early stage, the metallurgical recoveries are assumed to be equal (93%), Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022).
For Rock Saw Channel Sampling and soil sampling in the Copalquin District, silver equivalent (AgEq) is determined using the formula: AgEq grade = silver grade + ((Au grade x 70) x (Au recovery/silver recovery)). The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) fromkitco.com At this early stage, the metallurgical recoveries for Au and silver are assumed to be equal (93%) in the absence of metallurgical test work for Targets 2, 3, 4 and 5 material. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold.
Relationship between mineralisation widths and intercept lengths
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
True widths at Refugio between sections 120 and 1,000 vary according to the hole’s dip. Holes drilled at -50 degrees may be considered to have intercept lengths equal to true-widths, Holes drilled at -70 degrees had true widths approximately 92% of the reported intercept lengths and holes drilled at -90 degrees had true widths of 77% of the reported intercept lengths.
True widths at La Soledad are not fully understood and downhole intercepts to date, are reported.
At Las Brujas in Target 2, true widths are not yet known since we are still in the early stages of target definition.
Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
See figures in announcement
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
All exploration results are reported for intercepts greater than or equal to 0.1 g/t gold equivalent (gold plus silver at 70:1 price ratio for gold:silver).
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
No additional exploration data are substantive at this time.
Metallurgical test work on drill core composite made of crushed drill core from the El Refugio drill hole samples has been conducted.
The samples used for the test work are representative of the material that makes up the majority of the Maiden Resource Estimate for El Refugio release on 17th November 2021.
The test work was conducted by SGS laboratory Mexico using standard reagents and test equipment.
Further work
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
The Company drilled 148 diamond core holes from July 2020 to July 2022 for 32,712 m. The Company has stated its target to drill up to 45,000m from July 2025 until the second half of 2026
Diagrams are included in the announcements and presentations showing the drill target areas within the Copalquin District
1 See ASX announcement 16 Oct. 2025, 300 Metre T1 Extension -10.9 G/T AUEQ over 8.03m
2 See ASX announcement 28 Aug. 2025 MTH ACCELERATES EXPLORATION WITH NEW DRILLING AT TARGET 5
3 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.
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